How to Determine When to Buy Business Insurance
Regardless of which state your business is located in, it is essential to purchase business insurance. However, the best time to get business insurance can vary.
The best time to buy business insurance can be:
When your policy is scheduled to renew. You will have a good idea of what your future rates are going to be at this time. You can also compare your rates to other companies to find the best one at this point.
When you hire or lay off employees. As your employees change, your coverage needs will also change. It’s important to stay up to date on your business insurance for employees.
When you relocate your business. Leasing a new property or buying a new property will change your coverage needs.
When you purchase new equipment. Your business insurance coverage needs will change when you purchase new equipment and get rid of old equipment.
When you start offering new products. New inventory can change your business’s assets and therefore coverage needed.
When your income grows or declines significantly. As your income grows or declines your business will have to protect a different amount of assets. This will change your coverage needs.
What Is the Best Time of Year for Business Insurance?
Business insurance can protect your business year-round. However, there are certain factors to consider when buying business insurance. These can include:
- Evaluating your fiscal year and purchasing insurance in the time of year that best fits from that perspective.
- Taking into account your cash flow and premium payment options based on your available cash flow.
- Considering the time of year you want to have your policy renewal process begin each year. Policies begin renewal 60 days in advance of their effective date. For example, if your effective date is August 1, then your renewal date would begin processing on June 1. As you consider this, be sure to take into account your busy seasons so you can avoid them.
- Taking into account when your aggregate limit on your policy would renew and how that might correlate with your business model.
As a business owner, you may also want to evaluate your fiscal year and purchase insurance in that time of year.
Do I Need to Get Business Insurance?
Most states do require some types of business insurance. However, regardless of which state you are in, it’s recommended that you protect yourself and your business.
You can find the right protection by considering different types of business insurance coverages offered. Some types include:
Business Owner’s Policy (BOP). These policies combine business property and business liability insurance into one policy. BOP coverage helps your business cover the costs related to claims of bodily injury, personal and advertising injury, and property damage.
General Liability Insurance. This coverage helps protect your business from property damage claims, bodily injury claims, and personal and advertising injury claims.
Workers' Compensation Insurance. This coverage provides benefits to your employees. It helps cover work-related injuries or illnesses. This can include medical care, help replacing lost wages when unable to work, and more.
Business Income Insurance. This coverage helps replace lost income when your business suffers damage from fire, theft, or wind.
Data Breach Insurance. This coverage helps cover the costs of damages from a data security breach. This can include identify protection solutions, public relations, legal fees, liability and more.
How Do I Get Business Insurance From The Hartford?
Buying business insurance doesn’t have to feel overwhelming. Following the right steps can ensure a smooth and easy process.
Assessing your risks. Consider what your business is most at risk for. This could include threats from natural disasters or specific accidents causing lawsuits.
Finding the right agent. Business insurance agents can guide you in the decision making process. These agents will be able to answer your specific questions during the process. Also be sure you are ready to answer their questions as well. To get an accurate quote from your agent you will need to know:
- How many employees and contractors you have.
- How much your business makes in revenue.
- The type of services you provide.
- The state you are located in.
- Your claims history.
Comparing prices. It’s a good idea to compare business insurance rates with other companies. This will allow you to find the best price for you.
Reviewing your policy annually. Your business will likely change throughout the year. This means your coverage needs will also change. Reviewing your policy each year can save you money.